Βitcoin – BTCUSD continues lower today for sixth consecutive session giving up 2.07% at 8,350 close to three-month lows as bitcoin finds support at the 50-day moving average.
The bitcoin technical analysis picture is bearish for the short term, as the price trades below the 100 and 200-day moving average. Bitcoin is trading for second day below the support of the descending triangle enhancing the bearish outlook. Immediate support for bitcoin stands at 8,216 today’s low and then at 7,998 the low from yesterdays session. Some Technical analysts will argue that the move down will expand to the height of the triangle and can reach the 5,000 mark. The critical point for the next hours is the 50-day moving average at 8,309; a break below will attract more bears to join the downward move. If the bitcoin price stays above the 50-day moving average then I will not be surprised by a move up to 9.350 the triangle support line which now has turned into a resistance.
On the upside, BTCUSD strong resistance now stands at 8,746 daily top and then at 9,350 the triangle support line. Bulls may add to long positions if BTCUSD breaks above the 9,350; the take profit target must be set at 10,220 the triangle resistance, while a protective stop might be placed at 8,309 (50-day MA). Bears can take a bet and enter a short position if BTC breaks below the 50-day MA.